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Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation

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Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation

Helsinki, 15 May 2024 – Multitude SE, a listed European FinTech company, offering digital lending and online banking services to consumers, small and medium-sized businesses, and other FinTechs (ISIN: FI4000106299, WKN: A1W9NS) (“Multitude”, “Company” or “Group”) announces that in 2023 the Group changed its accounting policies, particularly regarding the presentation of the financial statements as well as corrected certain identified errors. These changes led to the presentation of the 2023 financial statements in the new format, including the restatement of the comparative statements for the year ended on 31 December 2022.

This document aims to provide an overview of these changes, their reasons, and the impact into comparative interim periods of Q1 2023, H1 2023, and 9M 2023 (see sections a) and b)).

In addition to these changes, Multitude restructured its organisational structure as of 1 January 2024. As a result, there is a restatement of comparative interim disclosures of reportable segments for the comparative periods of Q1 2023, H1 2023, 9M 2023 and full year 2023 (see section c).

a) Change in accounting policy - Adoption of new presentation:
In 2023, the Group undertook a strategic initiative to enhance the presentation of its financial statements, with the aim of providing reliable and more relevant information about the Group’s financial position and performance, aligning the presentation of primary statements with the common practice within the financial industry. As a result, the Group, starting with the financial year ended on 31 December 2023:

  • changed the presentation of the statement of financial position from current / non-current classification to presentation based on the order of liquidity;
  • has restructured the statement of profit or loss to present the net interest income, net fair value and foreign exchange gains and losses and other items;
  • made corresponding changes in the presentation of the statement of cash flows, to align it with the financial industry and to include the cash flows of operating financial assets and financial liabilities in the cash flows from operating activities in line with IAS 7.

These adjustments need to be read in conjunction with the annual consolidated financial statements for 2023.

b) Correction of prior period errors:
The following corrections have been made:

1. Inclusion of collection costs in the calculation of expected credit losses
Previously, the Group recognised collection costs as incurred and presented them in general and administrative expense. Debt collection costs are considered incremental and directly attributable to the recovery of cash flows of the granted loans in the event of a default, and as such, they should rather be incorporated into the estimate of the expected credit losses. After the correction, debt collection costs are included in the calculation of expected credit losses by incorporating them in the net expected cash flows of loans to customers to which the collection costs directly relate to.

2. Classification of reminder fees as interest income
The Group has revised its treatment of reminder fees. Historically, these fees have been classified as fee and commission income in the statement of profit or loss and accounted for under IFRS 15. Reminder fees are a standard feature of loans to customers, and they are collected from the inception of the loan contract over the lifetime of loan similarly to interest. From the financial year ended 31 December 2023 onwards, the Group accounts for these fees in line with IFRS 9 and factors the reminder fees in the calculation of interest income by applying the effective interest method.

3. Scoring costs
Scoring costs consist of credit information, credit rating and similar checks conducted when a client applies for a loan or product and reaches a certain stage in this process. Historically, scoring costs have been recognised as incurred and presented in general and administrative expense. However, whenever such scoring costs relate to a loan which is granted to the client, the costs should be treated as a directly attributable transaction cost to such loan and should be included in the loan balance at inception and in the calculation of the effective interest rate of that loan, thus decreasing the interest income. This restatement only applies to scoring costs related to loans issued.

These changes, together with any potential impact in recognised deferred taxes, have been applied consistently, by adjusting the comparative period and the opening balances for the earliest period presented for each affected financial statement line item.

The following tables show the restatement of consolidated statements of financial position for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).

Restatement of condensed interim consolidated statement of financial position for Q1 2023

EUR ’000Reported 31 March 2023

Adjustment amount

Adjustment number

Restated 31 March 2023

Old FSLI New FSLI
ASSETSASSETS
Non-current assets

Deferred tax assets

Deferred tax assets

6,81739467,211
Loans to customers

Loans to customers107,897401,8371, 5509,734
Other non-current financial assets

Debt investments32,061(7,494)324,567
Current assets
Loans to customersLoans to customers404,167(404,167)1-
Other current financial assetsOther financial assets17,1855,2752, 322,460
Prepaid expenses and other current assets

Prepaid expenses and other assets1,0042,21823,222
Total assetsTotal assets838,527(1,936)-836,591
EQUITYEQUITY
Retained earnings

Retained earnings

78,561(1,936)4, 576,625
Total equityTotal equity183,401(1,936)-181,465
LIABILITIESLIABILITIES
Non-current liabilities
Deposits from customers

Deposits from customers

123,639 460,767 6, 9 584,406
Lease liabilities

Lease liabilities

2,670 1,551 7 4,221
Current liabilities
Deposits from customersDeposits from customers457,118(457,118)6-
Lease liabilities

Lease liabilities

1,551(1,551)7-
Trade payables

Provisions, accruals and other liabilities

6,61010,3958, 917,005
Accruals and other current liabilities

Provisions, accruals and other liabilities

14,044(14,044)8-
Total liabilitiesTotal liabilities655,126--655,126
Total equity and liabilitiesTotal equity and liabilities838,527(1,936)-836,591

Description of adjustments to condensed interim consolidated statement of financial position for Q1 2023

NumberAmount
EUR ’000
Description
1404,167 Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
22,218 Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.
37,494 Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.
4394 An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.
52,330 An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.
6457,118 Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
71,551 Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
814,044 Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.
93,649 Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

Restatement of condensed interim consolidated statement of financial position for H1 2023

EUR ’000Reported 30 June 2023

Adjustment amount

Adjustment number

Restated 30 June 2023

Old FSLI New FSLI
ASSETSASSETS
Non-current assets

Deferred tax assetsDeferred tax assets6,536 394 5 6,930
Loans to customers

Loans to customers109,750 408,794 1, 6 518,544
Other non-current financial assets

Debt investments 41,809 (3,424)3, 4 38,385
Investments accounted for using the equity methodInvestments accounted for using the equity method 1,012 16 3 1,028
Current assets
Loans to customersLoans to customers 411,067 (411,067)1 -
Other current financial assetsOther financial assets 12,029 4,662 2, 4 16,691
Prepaid expenses and other current assets

Prepaid expenses and other assets 4,411 (1,254)2 3,157
Total assetsTotal assets 826,512 (1,879)824,633
EQUITYEQUITY
Retained earnings

Retained earnings

78,226 (1,879)5, 6 76,347
Total equityTotal equity 181,501 (1,879)179,622
LIABILITIESLIABILITIES
Non-current liabilities
Deposits from customers

Deposits from customers

149,206 423,922 7, 10 573,128
Lease liabilities

Lease liabilities

3,649 1,916 8 5,565
Current liabilities
Deposits from customersDeposits from customers 418,214 (418,214)7 -
Lease liabilities

Lease liabilities

1,916 (1,916) 8 -
Trade payables

Provisions, accruals and other liabilities

6,703 10,250 9, 10 16,953
Accruals and other current liabilities

Provisions, accruals and other liabilities

15,958 (15,958) 9 -
Total liabilitiesTotal liabilities 645,011 - - 645,011
Total equity and liabilitiesTotal equity and liabilities 826,512 (1,879)- 824,633

Description of adjustments to condensed interim consolidated statement of financial position for H1 2023

NumberAmount
EUR ’000
Description
1411,067Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
21,254Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.
316Reclassification of capitalised cost incurred to purchase investment in Sortter from Debt investment in Investment accounted via equity method
43,408Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.
5394An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.
62,273An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.
7418,214Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
81,916Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
915,958Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.
105,708Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

Restatement of condensed interim consolidated statement of financial position for 9M 2023

EUR ’000Reported 30 September 2023

Adjustment amount

Adjustment number

Restated 30 September 2023

Old FSLI New FSLI
ASSETSASSETS
Non-current assets

Deferred tax assets

Deferred tax assets

6,34839466,742
Loans to customers

Loans to customers111,193434,8311, 5546,024
Other non-current financial assets

Debt investments43,368(3,046)340,322
Current assets
Loans to customersLoans to customers437,046(437,046)1-
Other current financial assetsOther financial assets11,6041,7442, 313,348
Prepaid expenses and other current assets

Prepaid expenses and other assets1,4771,30222,779
Total assetsTotal assets819,534(1,821)-817,713
EQUITYEquity
Retained earnings

Retained earnings

82,798(1,821)4, 580,977
Total equityTotal equity184,368(1,821)-182,547
LIABILITIESLIABILITIES
Non-current liabilities
Deposits from customers

Deposits from customers

192,164364,1486, 9556,312
Lease liabilities

Lease liabilities

3,3531,94275,295
Current liabilities
Deposits from customersDeposits from customers355,504(355,504)6-
Lease liabilities

Lease liabilities

1,942(1,942)7-
Trade payables

Provisions, accruals and other liabilities

10,61510,9538, 921,568
Accruals and other current liabilities

Provisions, accruals and other liabilities

19,597(19,597)8-
Total liabilitiesTotal liabilities635,167--635,167
Total equity and liabilitiesTotal equity and liabilities819,534(1,821)-817,713

Description of adjustments to condensed interim consolidated statement of financial position for 9M 2023

NumberAmount
EUR ’000
Description
1437,046Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
21,302Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.
33,046Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.
4394An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.
52,215An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.
6355,504Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
71,942Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
819,597Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.
98,644Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

The following tables show the restatement of consolidated statements of profit or loss for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).

Restatement of condensed interim consolidated statement of profit or loss for Q1 2023

EUR ’000Reported Q1 2023

Adjustment amount

Adjustment number

Restated Q1 2023

Old FSLI New FSLI
Interest revenue

Interest income

53,248

988

2, 6, 7, 9

54,236

Fees

Fee and commission income

774 (772) 6 2
Impairment loss on loans to customers

Impairment loss on loans to customers

(19,817) (1,062) 3, 4 (20,879)
Bank and lending costs

General and administrative expense (3,044) 3,044 1 -
Selling and marketing expense

Selling and marketing expense

(3,309) (61)11 (3,370)
General and administrative expense

General and administrative expense

(6,160) (2,881) 1, 3, 7, 8, 10, 11 (9,041)
Profit before interests and taxes (EBIT)

Profit before interest expense and taxes (EBIT)

9,607 (744) 8,863
Finance income

Interest income

320

(320)

2

-
Finance costsInterest expense (7,043) 3,130 5, 8, 9 (3,913)
Finance costs

Fair value and foreign exchange gains and losses

- (1,918) 5 (1,918)
Profit before income tax

Profit before income tax

2,885 148 3,033
Income tax expense

Income tax expense

(662)

(90)

10

(752)

Profit for the period

Profit for the period

2,223 58 2,281

Description of adjustments to condensed interim consolidated statement of profit or loss for Q1 2023

NumberAmount
EUR ’000
Description
13,044 Bank and lending costs line item has been merged with general and administrative expenses.
2320 Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.
31,120 Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.
458 Impairment loss adjustment due to change in ECL estimate for collection costs.
51,918 A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.
6772 Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.
7118 Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.
81,225 Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.
913 Finance cost has been renamed to interest expense and reclassified to net interest income.
1090 Withholding tax on consumer loans has been reclassified from general and administrative expense to income tax expense.
1161 Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

Restatement of condensed interim consolidated statement of profit or loss for H1 2023

EUR ’000Reported H1 2023

Adjustment amount

Adjustment number

Restated
H1 2023

Old FSLI New FSLI
Interest revenue

Interest income

108,033 2,053 2, 6, 7, 9

110,086
Fees

Fee and commission income

1,495 (1,487) 6 8
Impairment loss on loans to customers

Impairment loss on loans to customers

(40,197) (2,012) 3, 4 (42,209)
Bank and lending costs

General and administrative expense (5,960) 5,960 1 -
Selling and marketing expense

Selling and marketing expense

(7,044) (120)11 (7,164)
General and administrative expense

General and administrative expense

(11,191) (4,267) 1, 3, 7, 8, 10, 11 (15,458)
Profit before interests and taxes (EBIT)

Profit before interest expense and taxes (EBIT)

20,909 127 - 21,047
Finance income

Interest income

771 (771) 2

-
Finance costsInterest expense (12,346) 3,514 5, 8, 9 (8,832)
Finance costs

Fair value and foreign exchange gains and losses

- (2,563) 5 (2,563)
Profit before income tax

Profit before income tax

9,346 307 - 9,653
Income tax expense

Income tax expense

(1,865) (192) 10

(2,057)
Profit for the period

Profit for the period

7,481 115 - 7,596

Description of adjustments to condensed interim consolidated statement of profit or loss for H1 2023

NumberAmount
EUR ’000
Description
15,960Bank and lending costs line item has been merged with general and administrative expenses.
2771Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.
32,127Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.
4115Impairment loss adjustment due to change in ECL estimate for collection costs.
52,563A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.
61,487Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.
7235Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.
8981Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.
930Finance cost has been renamed to interest expense and reclassified to net interest income.
10192Withholding tax on consumer loans has been reclassified from general and administrative expense to income tax expense.
11120Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

Restatement of condensed interim consolidated statement of profit or loss for 9M 2023

EUR ’000Reported 9M 2023

Adjustment amount

Adjustment number

Restated 9M 2023

Old FSLI New FSLI
Interest revenue

Interest income

165,2223,236 2, 6, 7, 9 168,458
Fees

Fee and commission income

2,171(2,124) 6 47
Impairment loss on loans to customers

Impairment loss on loans to customers

(61,452)(2,920) 3, 4 (64,372)
Bank and lending costs

General and administrative expense(8,913)8,913 1 -
Selling and marketing expense

Selling and marketing expense

(10,821)(176) 11 (10,997)
General and administrative expense

General and administrative expense

(16,708)(6,232) 1, 3, 7, 8, 10(22,940)
Profit before interests and taxes (EBIT)

Profit before interest expense and taxes (EBIT)

32,47069733,201
Finance income

Interest income

1,428(1,428) 2 -
Finance costsInterest expense(18,781)4,574 5, 8, 9 (14,207)
Finance costs

Fair value and foreign exchange gains and losses

-(3,670) 5 (3,670)
Profit before income tax

Profit before income tax

15,15117315,324
Income tax expense

Income tax expense

(2,796)-(2,796)
Profit for the period

Profit for the period

12,35517312,528

Description of adjustments to condensed interim consolidated statement of profit or loss for 9M 2023

NumberAmount EUR ’000Description
18,913Bank and lending costs line item has been merged with general and administrative expenses.
21,428Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.
33,093Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.
4173Impairment loss adjustment due to change in ECL estimate for collection costs.
53,670A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.
62,124Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.
7353Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.
8940Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.
936Finance cost has been renamed to interest expense and reclassified to net interest income.
10176Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

The following tables show the restatement of consolidated statements of cash flows for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).

Restatement of condensed interim consolidated statement of cash flows for Q1 2023

EUR ’000Reported Q1 2023

Adjustment amount

Adjustment number

Restated Q1 2023

Old FSLI New FSLI
Profit for the yearProfit for the period2,2235812,281
Adjustments for:Adjustments for:
Impairments on loansImpairment loss on loans to customers19,8171,0631, 4, 220,879
Depreciation and amortisationDepreciation and amortisation3,41626533,681
Finace costs, netNet interest income5,505(55,828)6(50,323)
Fair value and foreign exchange gains and lossesFair value and foreign exchange gains and losses1,9185, 111,918
Tax on income from operationsIncome tax expense662904752
Other adjustmentsOther adjustments388(265)3122
Working capital changes:Changes in operating assets:
Increase (-) / Decrease (+) in current receivablesIncrease (-) / Decrease (+) in Other Assets(4,399)(1,633)12, 14, 16(6,032)
Increase (-) / Decrease (+) in Loans to Customers-(21,151)2, 10, 15, 17(21,151)
Increase (-) / Decrease (+) in Other Financial Assets-(3,460)18(3,460)
Increase (-) / Decrease (+) in Derivative Financial Instruments (net)-9948, 12994
Changes in operating liabilities:Changes in operating liabilities:
Deposits from customersIncrease (+) / decrease (-) in Deposits from customers-80,8477, 1480,847
Increase (+) / Decrease (-) in trade payables and other liabilitiesIncrease (+) / decrease (-) in Other liabilities(3,339)4,76716, 17, 18(1,429)
Interest paidInterest paid(2,623)69713 (1,926)
Interest receivedInterest received91 48,313 6, 13, 15 48,405
Income taxes paidIncome taxes paid159--159
Movements in gross portfolio(23,222)23,22210-
Net cash from operating activitiesNet cash from operating activities(1,322)79,896-78,575
Cash flows from investing activitiesCash flows from investing activities
Proceeds from sale of investments and other assetsIncrease (-) / Decrease (+) in Derivative Financial Instruments (net)1,233(1,233)8-
Purchase of tangible and intangible assetsPurchase of tangible assets-(242)9(242)
Purchase of tangible and intangible assetsPurchase of intangible assets(2,642)2429(2,400)
Net cash used in investing activitiesNet cash used in investing activities(1,409)(1,233)26(2,642)
Cash flows from financing activitiesCash flows from financing activities
Perpetual bonds interestRepayment of perpetual bonds interest(1,365)--(1,365)
Repayment of finance lease liabilitiesRepayment of lease liabilities(562)--(562)
Deposits from customersIncrease (+) / decrease (-) in Deposits from customers79,204(79,204)7-
Net cash used in financing activitiesNet cash used in financing activities77,277(79,204)7(1,928)
Cash and cash equivalents at beginning of the periodCash and cash equivalents at beginning of the period153,325--153,326
Exchange gains/(losses) on cash and cash equivalentsExchange gains/(losses) on cash and cash equivalents(701)54111(160)
Net increase/(decrease) in cash and cash equivalentsNet increase/decrease in cash and cash equivalents74,546(541)1174,005
Cash and cash equivalents at the end of the periodCash and cash equivalents at the end of the period227,171--227,171

Description of adjustments to condensed interim consolidated statement of cash flows for Q1 2023

NumberAmount
EUR ’000
Description
158Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.
21,210Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.
3265Impairment on non-financial assets has been reclassified from other adjustments line.
490An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.
52,459Finance cost, net has been split between net interest income and foreign exchange gain or loss in the statement of profit or loss.
653,369Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.
779,204Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.
81,233Reclassification of changes in derivative assets and liabilities.
9242Separation of purchase of tangible assets from purchase of intangible assets.
1023,222Reclassification of movement of loans to customers with subsequent renaming of line item.
11541Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.
12239Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.
13697Adjustment of net interest income with netting of interest received and interest paid line items.
141,643Reclassification of change in prepayment related to issue costs to loans to customers.
154,359Separation of movement on interest accrual from loans to customers.
16229Netting of other liabilities with other assets to match movement on the statement of financial position.
171,078Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.
183,460Netting of other liabilities to other financial assets to match movement on the statement of financial position.

Restatement of condensed interim consolidated statement of cash flows for H1 2023

EUR ’000Reported H1 2023

Adjustment amount

Adjustment number

Restated H1 2023

Old FSLI New FSLI
Profit for the yearProfit for the period7,48111517,596
Adjustments for:Adjustments for:
Impairments on loansImpairment loss on loans to customers40,1972,0131, 242,210
Depreciation and amortisationDepreciation and amortisation7,17141937,590
Finace costs, netNet interest income10,613(111,867)5, 6(101,254)
Fair value and foreign exchange gains and lossesFair value and foreign exchange gains and losses2,5635, 112,563
Tax on income from operationsIncome tax expense1,86519242,057
Other adjustmentsOther adjustments704(419)3286
Working capital changes:Changes in operating assets:
Movements in gross portfolioIncrease (-) / Decrease (+) in Loans to Customers9,291(60,582)10, 12, 14, 16, 17(51,291)
Increase (-) / Decrease (+) in Other Financial Assets(17,279)2, 4, 15, 17, 19(17,277)
Increase (-) / Decrease (+) in Derivative Financial Instruments (net)23018230
Increase (-) / Decrease (+) in Other Assets(198) 8, 12(198)
Changes in operating liabilities:Changes in operating liabilities:
Deposits from customersIncrease (+) / decrease (-) in Deposits from customers-69,7507, 1469,750
Increase (+) / Decrease (-) in trade payables and other liabilitiesIncrease (+) / decrease (-) in Other liabilities(2,288)3,66516, 181,377
Interest paidInterest paid(4,004)(671)13(4,675)
Interest receivedInterest received45799,2096, 13, 1599,666
Income taxes paidIncome taxes paid(486)--(486)
Movements in gross portfolioIncrease (-) / Decrease (+) in Loans to Customers(65,323)65,32310-
Net cash from operating activitiesNet cash from operating activities5,67852,463-58,143
Cash flows from investing activitiesCash flows from investing activities
Proceeds from sale of investments and other assetsIncrease (-) / Decrease (+) in Derivative Financial Instruments (net)(21)218-
Proceeds from sale of investments and other assetsIncrease (-) / Decrease (+) in Derivative Financial Instruments (net)(12,800)12,80019-
Purchase of tangible and intangible assetsPurchase of tangible assets-1469146
Purchase of tangible and intangible assetsPurchase of intangible assets(4,863)(146)9(5,009)
Net cash used in investing activitiesNet cash used in investing activities(18,700)12,821 45 (5,879)
Cash flows from financing activitiesCash flows from financing activities
Perpetual bonds interestRepayment of perpetual bonds interest(2,845)(2,845)
Repayment of finance lease liabilitiesRepayment of lease liabilities(1,104)--(1,104)
Deposits from customersIncrease (+) / decrease (-) in Deposits from customers66,002(66,002)7-
Net cash used in financing activitiesNet cash used in financing activities57,589(66,002) 7 (8,413)
Cash and cash equivalents at beginning of the periodCash and cash equivalents at beginning of the period153,325--153,326
Exchange gains/(losses) on cash and cash equivalentsExchange gains/(losses) on cash and cash equivalents(1,186)71811(469)
Net increase/(decrease) in cash and cash equivalentsNet increase/decrease in cash and cash equivalents44,568(718)1143,850
Cash and cash equivalents at the end of the periodCash and cash equivalents at the end of the period196,707--196,707

Description of adjustments to condensed interim consolidated statement of cash flows for H1 2023

NumberAmount
EUR ’000
Description
1115Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.
22,128Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.
3419Impairment on non-financial assets has been reclassified from other adjustments line.
4192An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.
53,281Finance cost, net has been split between net interest income and foreign exchange gain or loss in the statement of profit or loss.
6108,586Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.
766,002Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.
821Reclassification of changes in derivative assets and liabilities.
9146Separation of purchase of tangible assets from purchase of intangible assets.
1065,323Reclassification of movement of loans to customers with subsequent renaming of line item.
11718Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.
12177Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.
13671Adjustment of net interest income with netting of interest received and interest paid line items.
143,748Reclassification of change in prepayment related to issue costs to loans to customers.
1510,048Separation of movement on interest accrual from loans to customers.
163,895Netting of other liabilities with other assets to match movement on the statement of financial position.
1712,207Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.
18230Netting of other liabilities to other financial assets to match movement on the statement of financial position.
1912,800Reclassification of debt investment purchase from purchase of non-current financial investments to other financial assets.

Restatement of condensed interim consolidated statement of cash flows for 9M 2023

EUR ’000Reported 9M 2023

Adjustment Amount

Adjustment number

Restated 9M 2023

Old FSLI New FSLI
Profit for the yearProfit for the period 12,356 172 1 12,528
Adjustments for:Adjustments for:
Impairments on loansImpairment loss on loans to customers 61,452 2,920 1, 2 64,372
Depreciation and amortisationDepreciation and amortisation 11,582 (85)3 11,497
Finance costs, netNet interest income 16,435 (170,686)5, 6 (154,251)
Fair value and foreign exchange gains and lossesFair value and foreign exchange gains and losses- 3,670 5, 11 3,670
Tax on income from operationsIncome tax expense 2,492 304 4 2,796
Other adjustmentsOther adjustments 347 85 3 432
Working capital changes:Changes in operating assets:
Movements in gross portfolioIncrease (-) / Decrease (+) in Loans to Customers 20,805 (121,739)10, 12, 14, 16, 17 (100,934)
Increase (-) / Decrease (+) in Other Financial Assets- (19,214)2, 4, 15, 17, 19 (19,215)
Increase (-) / Decrease (+) in Derivative Financial Instruments (net)- 819 18 819
Increase (-) / Decrease (+) in Other Assets- 3,524 8, 12 3,524
Changes in operating liabilities:Changes in operating liabilities:
Deposits from customersIncrease (+) / decrease (-) in Deposits from customers- 52,935 7, 14 52,935
Increase (+) / Decrease (-) in trade payables and other liabilitiesIncrease (+) / decrease (-) in Other liabilities (3,034) 9,025 16, 18 5,991
Interest paidInterest paid (7,545) (83)13 (7,628)
Interest receivedInterest received 819 158,340 6, 13, 15 159,159
Income taxes paidIncome taxes paid (547) (547)
Movements in gross portfolioIncrease (-) / Decrease (+) in Loans to Customers (115,421) 115,421 10 -
Net cash from operating activitiesNet cash from operating activities (259) 35,408 35,149
Cash flows from investing activitiesCash flows from investing activities
Proceeds from sale of investments and other assetsIncrease (-) / Decrease (+) in Derivative Financial Instruments (net) 4,774 (4,774)8-
Proceeds from sale of investments and other assetsIncrease (-) / Decrease (+) in Derivative Financial Instruments (net) (14,600) 14,600 19-
Purchase of tangible and intangible assetsPurchase of tangible assets- (126)9 (126)
Purchase of tangible and intangible assetsPurchase of intangible assets (8,036) 126 9 (7,910)
Net cash used in investing activitiesNet cash used in investing activities (18,879) 9,826 45 (9,052)
Cash flows from financing activitiesCash flows from financing activities
Perpetual bonds interestRepayment of perpetual bonds interest (4,426)-- (4,426)
Repayment of finance lease liabilitiesRepayment of lease liabilities (1,802)-- (1,802)
Deposits from customersIncrease (+) / decrease (-) in Deposits from customers 46,316 (46,316)7-
Net cash used in financing activitiesNet cash used in financing activities 34,232 (46,316)7 (12,084)
Cash and cash equivalents at beginning of the periodCash and cash equivalents at beginning of the period 153,326 -- 153,326
Exchange gains/(losses) on cash and cash equivalentsExchange gains/(losses) on cash and cash equivalents (1,380) 1,082 11 (298)
Net increase/(decrease) in cash and cash equivalentsNet increase/decrease in cash and cash equivalents 15,094 (1,082)11 14,012
Cash and cash equivalents at the end of the periodCash and cash equivalents at the end of the period 167,040 -- 167,040

Description of adjustments to condensed interim consolidated statement of cash flows for 9M 2023

NumberAmount
EUR ’000
Description
1 172 Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.
2 3,092 Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.
3 85Impairment on non-financial assets has been reclassified from other adjustments line.
4 304 An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.
5 4,752 Finance cost, net has been split between net interest income and fair values and foreign exchange gain or loss in the statement of profit or loss.
6 165,934 Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.
7 46,316 Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.
8 4,774 Reclassification of changes in derivative assets and liabilities.
9 126 Separation of purchase of tangible assets from purchase of intangible assets.
10 115,421 Reclassification of movement of loans to customers with subsequent renaming of line item.
11 1,082 Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.
12 1,250 Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.
13 83Adjustment of net interest income with netting of interest received and interest paid line items.
14 6,619 Reclassification of change in prepayment related to issue costs to loans to customers.
15 7,677 Separation of movement on interest accrual from loans to customers.
16 9,844 Netting of other liabilities with other assets to match movement on the statement of financial position.
17 8,895 Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.
18 819Netting of other liabilities to other financial assets to match movement on the statement of financial position.
19 14,600 Reclassification of debt investment purchase from purchase of non-current financial investments to other financial assets.

c) Changes in organisational structure

In November 2023, Multitude announced plans to improve its organisational structure and introduce a new business unit, Wholesale banking. This was done by reorganising part of the SweepBank business. Operational since January 1, 2024, the new business unit is active under the Multitude Bank brand and offers two products: Secured Debt and a Payment Solution.

Simultaneously, in its financial reports, the Group renamed the Ferratum business unit to the Consumer banking business unit while keeping the brand Ferratum. CapitalBox’s business unit was renamed SME banking, keeping CapitalBox as the brand name. The reorganisation led to the reallocation of revenues, direct expenses and receivables of Prime Loans to Ferratum, Sales Finance to CapitalBox and the redistribution of overhead costs among the three business units. These changes have been incorporated into the segment reporting, and the financial results of business units for the comparative periods have been restated to ensure comparability.

The following tables show the restatement of profit or loss disclosure of operating and reportable segments for interim periods of Q1 2023, H1 2023, 9M 2023 and full year 2023 due to the change in accounting policy, amendment of prior period error and change in organisational structure.

Restatement of operating and reportable segments for Q1 2023

Old FSLINew FSLIReported Ferratum Q1 2023 Restatement amountRestatement numberRestated Consumer banking Q1 2023 Reported Capital Box Q1 2023 Restatement amountRestatement numberRestated SME banking Q1 2023 Reported Sweep Bank Q1 2023 Restatement amountRestatement numberRestated Wholesale banking Q1 2023
Interest revenueInterest income 43,377 4,537 9, 16, 19, 25, 30 47,913 5,475 45 17, 20 5,521 4,397 (3,595) 18, 21, 30 801
Servicing fee revenueFee and commission income 754 (752) 9, 31 2 - -- - 20 (20) 31 -
Impairment loss on loans to customersImpairment loss on loans to customers (15,467) (4,593) 3, 13, 32 (20,060) (786) (30) 4, 14 (816) (3,564) 3,562 15, 32, 33 (3)
Bank and lending costsGeneral and administrative expense (2,548) 2,548 6 - (281) 281 7 - (215) 215 8 -
Personnel expensePersonnel expense (5,172) (1,233) 34 (6,405) (1,442) (223) 35 (1,665) (1,788) 1,456 34, 35 (332)
Selling and marketing expenseSelling and marketing expense (2,536) (198) 22, 36 (2,734) (606) (4) 23, 37 (610) (167) 141 24, 36, 37 (26)
General and administrative expenseGeneral and administrative expense (3,924) (3,429) 5, 6, 10, 13, 16, 22, 38 (7,353) (851) (425) 7, 11, 14, 17, 23, 39 (1,275) (1,385) 973 8, 12, 15, 18, 24, 38, 39 (412)
Depreciation and amortisationDepreciation and amortisation (1,949) (1,469) 40 (3,418) (198) (42) 41 (240) (1,534) 1,511 40, 41 (23)
Other income, netOther income (2) 31 26, 42 29 - (6) 27, 43 (6) - (4) 42, 43 (5)
Other income, netOther expense- (19) 26 (19)- (2) 27 (2)----
Profit (loss) before interests and taxes (‘EBIT’)Profit before interest expense and taxes (EBIT) 12,533 (4,577)- 7,955 1,311 (406) 907 (4,236) 4,238 --
Allocated finance costs, netInterest expense (3,096) 169 10, 19, 29, 45 (2,927) (953) 101 11, 20, 29, 45 (853) (1,252) 1,119 12, 21, 44, 45 (133)
Unallocated foreign exchange losses, netFair value and foreign exchange gains and losses - (1,579) 1, 25, 29 (1,579) - (339) 2, 29 (339) - -- -
Profit before income taxesProfit before income tax 9,437 (5,987)- 3,450 358 (644)- (285) (5,488) 5,357 - (133)

Description of adjustments to operating and reportable segments for Q1 2023

NumberAmount
EUR ’000
Description
1 1,171 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.
2 251 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.
3 35 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.
4 23 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
5 90 Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.
6 2,548 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.
7 281 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.
8 215 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.
9 772 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
10 715 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
11 220 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
12 289 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
13 874 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.
14 44 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
15 201 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.
16 96 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
17 12 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
18 10 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.
19 187 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.
20 58 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.
21 76 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.
22 47 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
23 11 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
24 3 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
25 13 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.
26 19 Gross up of other income and expense previously reported at net value in Ferratum business unit.
27 2 Gross up of other income and expense previously reported at net value in CapitalBox business unit.
28 395 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.
29 88 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.
30 3,661 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
31 20 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
32 3,754 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
33 9 Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
34 1,233 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
35 223 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.
36 151 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
37 7 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
38 1,272 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
39 9 Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
40 1,469 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
41 42 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
42 12 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
43 8 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
44 755 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
45 150 Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

Restatement of operating and reportable segments for H1 2023

Old FSLINew FSLIReported Ferratum H1 2023 Restatement amountRestatement numberRestated Consumer banking H1 2023 Reported Capital Box H1 2023 Restatement amountRestatement numberRestated SME banking H1 2023 Reported Sweep Bank H1 2023 Restatement amountRestatement numberRestated Wholesale banking H1 2023
Interest revenueInterest income 87,710 9,387 9, 16, 19, 25, 30 97,097 11,000 165 17, 20, 47 11,166 9,322 (7,500) 18, 21, 30, 47 1,823
Servicing fee revenueFee and commission income 1,449 (1,442) 9, 31 8 - --- 45 (45) 31 -
Impairment loss on loans to customersImpairment loss on loans to customers (29,076) (10,667) 3, 13, 32 (39,742) (2,413) (50) 4, 14 (2,462) (8,709) 8,704 15, 32, 33 (5)
Bank and lending costsGeneral and administrative expense (4,916) 4,916 6 - (549) 549 7 - (495) 495 8 -
Personnel expensePersonnel expense (10,385) (2,319) 34 (12,704) (2,803) (601) 35 (3,404) (3,604) 2,920 34, 35 (683)
Selling and marketing expenseSelling and marketing expense (5,311) (396) 22, 36 (5,707) (1,402) (14) 23, 37 (1,416) (331) 290 24, 36, 37 (41)
General and administrative expenseGeneral and administrative expense (7,280) (5,137) 5, 6, 10, 13, 16, 22, 38 (12,417) (1,458) (852) 7, 11, 14, 17, 23, 39 (2,310) (2,454) 1,723 8, 12, 15, 18, 24, 38, 39 (731)
Depreciation and amortisationDepreciation and amortisation (4,432) (2,588) 40 (7,020) (438) (82) 41 (520) (2,719) 2,670 40, 41 (50)
Other income, netOther income 164 8 26, 42 172 (5) 17 27, 43 12 (4) 15 42, 43 11
Other income, netOther expense- - 26 - - (40) 27 (40)----
Not allocatedProfit (loss) for the period from investment in associates - -- - - -- - - 12 46 12
Profit (loss) before interests and taxes (‘EBIT’)Profit before interest expense and taxes (EBIT) 27,923 (8,238)- 19,686 1,932 (908)- 1,027 (8,949) 9,285 - 335
Allocated finance costs, netInterest expense (5,500) (1,115) 10, 19, 29, 45 (6,615) (1,638) (223) 11, 20, 29, 45 (1,862) (2,198) 1,842 12, 21, 44, 45 (355)
Unallocated foreign exchange losses, netFair value and foreign exchange gains and losses - (2,104) 1, 25, 29 (2,104) - (459) 2, 29 (459) - -- -
Profit before income taxesProfit before income tax 22,423 (11,457)- 10,967 294 (1,590)- (1,293) (11,147) 11,127 - (20)

Description of adjustments to operating and reportable segments for H1 2023

NumberAmount, EUR ’000Description
1 1,838 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.
2 401 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.
3 69 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.
4 46 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
5 192 Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.
6 4,916 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.
7 549 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.
8 495 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.
9 1,487 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
10 638 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
11 128 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
12 215 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
13 1,539 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.
14 128 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
15 461 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.
16 191 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
17 24 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
18 20 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.
19 454 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.
20 135 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.
21 182 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.
22 90 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
23 24 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
24 6 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
25 30 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.
26 - Gross up of other income and expense previously reported at net value in Ferratum business unit.
27 40 Gross up of other income and expense previously reported at net value in CapitalBox business unit.
28 236 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.
29 58 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.
30 7,607 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
31 45 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
32 9,197 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
33 32Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
34 2,319 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
35 601 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.
36 306 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
37 10 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
38 1,595 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
39 351Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
40 2,588 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
41 82 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
42 8 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
43 23 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
44 1,535 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
45 274Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
46 12Inclusion of results from participation in associates in Wholesale banking previously not allocated to reportable segments. This includes investment in Sortter Oy.
47 54Allocation of SweepBank interest revenue from Sale Finance business to SME banking business unit.

Restatement of operating and reportable segments for 9M 2023

Old FSLINew FSLIReported Ferratum 9M 2023 Restatement amountRestatement numberRestated Consumer banking 9M 2023 Reported Capital Box 9M 2023 Restatement amountRestatement numberRestated SME banking 9M 2023 Reported Sweep Bank 9M 2023 Restatement amountRestatement numberRestated Wholesale banking 9M 2023
Interest revenueInterest income 133,881 14,304 9, 16, 19, 25, 30 148,185 16,771 290 17, 20, 47 17,061 14,569 (11,358) 18, 21, 30, 47 3,211
Servicing fee revenueFee and commission income 2,105 (2,057) 9, 31 47 - -- - 67 (67) 31 -
Impairment loss on loans to customersImpairment loss on loans to customers (44,076) (15,832) 3, 13, 32 (59,908) (4,408) (51) 4, 14 (4,459) (12,968) 12,962 15, 32, 33 (5)
Bank and lending costsGeneral and administrative expense (7,323) 7,323 6 - (793) 793 7 - (797) 797 8 -
Personnel expensePersonnel expense (15,560) (3,360) 34 (18,920) (4,242) (890) 35 (5,132) (5,395) 4,250 34, 35 (1,145)
Selling and marketing expenseSelling and marketing expense (8,213) (517) 22, 36 (8,730) (2,205) (17) 23, 37 (2,221) (404) 357 24, 36, 37 (46)
General and administrative expenseGeneral and administrative expense (10,837) (7,583) 5, 6, 10, 13, 16, 22, 38 (18,419) (2,196) (1,227) 7, 11, 14, 17, 23, 39 (3,422) (3,675) 2,579 8, 12, 15, 18, 24, 38, 39 (1,098)
Depreciation and amortisationDepreciation and amortisation (6,901) (3,680) 40 (10,581) (690) (107) 41 (797) (3,906) 3,787 40, 41 (119)
Other income, netOther income (335) 337 26, 42 2 - - 27, 43 - - - 42, 43 -
Other income, netOther expense- (335) 26 (335)- (2) 27 (2)--- -
Not allocatedProfit (loss) for the period from investment in associates - -- - - -- - - 34 46 34
Profit (loss) before interests and taxes (‘EBIT’)Profit before interest expense and taxes (EBIT) 42,741 (11,400)- 31,342 2,237 (1,211)- 1,027 (12,509) 13,341 - 832
Allocated finance costs, netInterest expense (8,650) (2,009)- (10,659) (2,440) (460)- (2,900) (3,271) 2,624 - (648)
Unallocated foreign exchange losses, netFair value and foreign exchange gains and losses - (3,058)- (3,058) - (612)- (612) - -- -
Profit before income taxesProfit before income tax 34,091 (16,467)- 17,625 (203) (2,283)- (2,486) (15,780) 15,965 - 184

Description of adjustments to operating and reportable segments for 9M 2023

NumberAmount, EUR ’000Description
1 2,483 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.
2 508 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.
3 103 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.
4 69 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
5 - Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.
6 7,323 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.
7 793 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.
8 797 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.
9 2,124 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
10 610 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
11 124 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
12 207 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
13 2,218 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.
14 222 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
15 653 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.
16 286 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
17 36 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
18 31 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.
19 860 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.
20 243 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.
21 325 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.
22 134 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
23 36 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
24 7 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
25 37 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.
26 335 Gross up of other income and expense previously reported at net value in Ferratum business unit.
27 2 Gross up of other income and expense previously reported at net value in CapitalBox business unit.
28 538 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.
29 104 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.
30 11,569 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
31 67 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
32 13,717 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
33 102Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
34 3,360 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
35 890 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.
36 383 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
37 19 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
38 2,288 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
39 604Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
40 3,680 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
41 107 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
42 2 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
43 2 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
44 2,297 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
45 445 Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
46 34 Inclusion of results from participation in associates in Wholesale banking previously not allocated to reportable segments. This includes investment in Sortter Oy.
47 83 Allocation of SweepBank interest revenue from Sale Finance business to SME banking business unit.

Restatement of operating and reportable segments for 2023

Old FSLINew FSLIReported Ferratum 2023 Restatement amountRestatement numberRestated Consumer banking 2023 Reported Capital Box 2023 Restatement amountRestatement numberRestated SME banking 2023 Reported Sweep Bank 2023 Restatement amountRestatement numberRestated Wholesale banking 2023
RevenueInterest income 192,731 8,959 1 201,690 24,686 (988) 2 23,698 23,137 (18,066) 3 5,071
Not reportedFee and commission income- 63 4 63 --------
Credit lossesImpairment loss on loans to customers (62,760) (19,889) 5 (82,649) (6,635) (120) 6 (6,755) (16,197) 16,348 7 151
Not reportedPersonnel expense- (25,425) 8 (25,425)- (7,022) 9 (7,022)- (1,629) 10 (1,629)
Not reportedSelling and marketing expense- (10,819) 11 (10,819)- (3,324) 12 (3,324)- (37) 13 (37)
Not reportedGeneral and administrative expense- (25,559) 14 (25,559)- (4,830) 15 (4,830)- (1,587) 16 (1,587)
Not reportedDepreciation and amortisation- (13,781) 17 (13,781)- (1,069) 18 (1,069)- (167) 19 (167)
Not reportedOther income- 8 20 8 - 14 21 14 - 8 22 8
Not reportedOther expense- (495) 23 (495)- (7) 24 (7)----
Not reportedProfit (loss) for the period from investment in associates--- - --- - - 6 25 6
EBIT (reported to CODM)Profit before interest expense and taxes (EBIT) 59,079 (16,046)- 43,033 1,735 (1,029)- 706 (15,258) 17,074 - 1,816
Not reportedInterest expense- (16,582) 26 (16,582)- (4,402) 27 (4,402)- (1,254) 28 (1,254)
Not reportedFair value and foreign exchange gains and losses- (3,557) 29 (3,557)- (771) 30 (771)--- -
Not reportedProfit before income tax 59,079 (36,185)- 22,894 1,735 (6,202)- (4,467) (15,258) 15,820 - 562

Description of adjustments to operating and reportable segments for full year 2023

NumberAmount
EUR ’000
Description
18,959Direct allocation of interest income to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
2988Direct allocation of interest income to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
318,066Direct allocation of interest income to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
463Direct allocation of fee income to Consumer banking business adjusted for organisation change unit previously not reported in annual statement 2023.
519,889Direct allocation of impairment losses on loans to customers to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
6120Direct allocation of impairment losses on loans to customers to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
716,348Direct allocation of impairment losses on loans to customers to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
825,425Direct allocation of personnel expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
97,022Direct allocation of personnel expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
101,629Direct allocation of personnel expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
1110,819Direct allocation of selling and marketing expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
123,324Direct allocation of selling and marketing expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
1337Direct allocation of selling and marketing expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
1425,559Direct allocation of general and administrative expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
154,830Direct allocation of general and administrative expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
161,587Direct allocation of general and administrative expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
1713,781Direct allocation of depreciation and amortization to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
181,069Direct allocation of depreciation and amortization to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
19167Direct allocation of depreciation and amortization to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
208Direct allocation of other income to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
2114Direct allocation of other income to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
228Direct allocation of other income to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
23495Direct allocation of other expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
247Direct allocation of other expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
256Direct allocation of financial results from participation in associates to Wholesale banking business unit previously not reported in annual statement 2023.
2616,582Direct allocation of interest expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
274,402Direct allocation of interest expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
281,254Direct allocation of interest expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
293,557Direct allocation of foreign currency exchange losses to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
30771Direct allocation of foreign currency exchange losses to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

Contact:

Lasse Mäkelä 
Chief Strategy and IR Officer
Phone: +41 79 371 34 17
E-Mail: lasse.makela@multitude.com

About Multitude SE:

Multitude is a listed European FinTech company, offering digital lending and online banking services to consumers, small and medium-sized businesses, and other FinTechs overlooked by traditional banks. The services are provided through three independent business units, which are served by our internal Banking-as-a-Service Growth Platform. Multitude’s business units are consumer banking (Ferratum), SME banking (CapitalBox) and wholesale banking (Multitude Bank). Multitude Group employs over 700 people in 25 countries and offers services in 16 countries, achieving a combined turnover of 230 million euros in 2023. Multitude was founded in Finland in 2005 and is listed on the Prime Standard segment of the Frankfurt Stock Exchange under the symbol 'FRU'.

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